The Chubb Corporation's Board of Directors announced that John Finnegan, Chubb's chairman, president and CEO, will retain his current roles until the end of 2016. Any tension over this decision was derived from the fact that Finnegan turns 65 at the end of 2014, which is when the company’s policy says executives should retire.
"The Board's decision was based on its high level of satisfaction with Chubb's overall performance since John Finnegan became CEO in December 2002," said James Zimmerman, Chubb's lead director. "Under John's leadership, the company has achieved consistently strong operating earnings notwithstanding unusually high catastrophe losses and, in more recent years, unprecedented low interest rates.
"Extending this track record is the first priority for the Board, and we believe that it is in the best interests of our shareholders and employees that John continue as Chubb's CEO," Zimmerman added.
During the period from Jan. 1, 2003 through Sept. 30, 2013, Chubb's compound average annual total return totaled 14.8 percent, compared to 8.4 percent for the S&P 500 and 7.0 percent for the S&P Property & Casualty Insurance Index.
Over the next three years, Chubb's Board of Directors said it will continue its review of CEO succession planning. As part of this review, Chubb announced a realignment of responsibilities among the top members of Chubb's management team:
Paul Krump, 53, currently president of commercial and specialty lines, will become president of personal lines and claims and will retain responsibility for the accident and health business.
Dino Robusto, 55, currently president of personal lines and claims, will become president of commercial and specialty lines and will retain responsibility for IT.
Richard Spiro, 49, will remain CFO and assume responsibility for corporate development.
The realignment will be effective Jan. 1, 2014.
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